Apple announced on Monday that it will invest $500 billion in expanding its U.S. facilities over the next four years. This major investment, which is expected to create 20,000 jobs, is partly aimed at helping the company avoid new tariffs on products imported from China. President Donald Trump had earlier imposed a 10% tariff on all Chinese imports, which affects Apple, as many of its products, including most iPhones, are sourced from China.
Following a meeting with Apple CEO Tim Cook, Trump hinted at the company’s plans for the investment. He praised Apple’s decision, linking it to his tariff policies. Apple, however, has been expanding its production outside of China for a while now, partly due to production disruptions during the COVID-19 pandemic. For example, Apple has set up a Mac Pro production facility in Texas.
In addition to Apple’s efforts, TSMC (a key chip supplier for Apple) is also building a chip manufacturing plant in Arizona with support from a $6.6 billion initiative by the Biden administration. Though Apple has been diversifying its production, including opening factories in countries like India and Vietnam, this new U.S. investment marks a significant expansion in its operations within the U.S.
Cook expressed confidence in American innovation, stating that this investment demonstrates Apple’s commitment to the country’s future. Meanwhile, Trump took to Truth Social to thank Cook, claiming that his policies had prompted Apple’s decision to invest. He also suggested that without his tariffs, Apple wouldn’t have made such a large investment.
White House trade advisor Peter Navarro didn’t rule out a tariff exemption for Apple on electronics imports from China, but he emphasized that the decision ultimately rests with President Trump. He supported the administration’s tariff policies, claiming that they were encouraging major investments across various industries in the U.S.
Apple is not known for manufacturing its products in-house; instead, it works with a wide network of contractors. As part of its $500 billion investment, Apple plans to collaborate with thousands of manufacturing partners across all 50 states to produce more products in the U.S. Additionally, Apple will create an academy in Detroit to help small and medium-sized businesses implement AI and smart manufacturing practices.
In Houston, Apple will begin producing servers this year, which are essential for its artificial intelligence projects. The company is also expanding its data center capacity across multiple states and increasing its production of Apple TV+ content in 20 states as part of its overall investment.